What is Zakaat?

 

Zakaat is that amount which is made obligatory by Allah, to be paid to a particular person, or persons, possessing certain special characteristics, as explained later.  It is not payable to any other individual, or for the welfare of any institution which is not a person.

The rate of Zakaat is 2.5% ( which is the same as 1/40)

 

Who should pay Zakaat?

 

Zakaat is obligatory on a free Muslim, who firstly is responsible enough to fulfil religious obligations.  He must also possess wealth, equivalent to a certain minimum, which is called Nisaab.

 

This wealth, whether in the form of money, gold, silver, utensils of gold or silver, or articles of merchandise (for sale), of whatever description, is liable for Zakaat, if the value amounts to the Nisaab.

 

What is the minimum (Nisaab)?

 

1.      The minimum one needs in order to be the owner of Nisaab is:

 

a)      87.48 grams of gold, or

b)     612.36 grams of silver, or it’s equivalent in:-

c)      cash

d)     merchandise (for sale) or

e)      livestock (see relevant table for calculating Nisaab)

f)       other income such as rent

 

2.  The minimum must be free from debt and from the basic necessities of life, such as shelter, clothing, household furniture, cattle for personal use, armour and weapon from personal use, books (of scholars), and tools of a craftsman.

 

3.  The minimum must be in the possession of the owner for at least one uninterrupted year.  If at any time during the year the individual possesses less than this, the year’s possession is interrupted, and consequently the obligation of Zakaat falls away.  As for the produce of the original minimum obtained, within the year, it will be added to the same type of wealth, and Zakaat will be levied on it, on completion of one uninterrupted year for the original minimum.  The rule remains the same whether the produce is obtained by trade, inheritance or any other means.

 

 

The rate of Zakaat

Zakaat is calculated on the following amounts:

 

1.  GOLD: 87.48 grams (which is the same as 20 mithqals, 7.5 Tolas, 2,8125 Troy ounces, or 1350 grains)

 

2.  SILVER: 612.36 grams (which is the same as 200 dirhams, 52.5 Tolas, 19, 6875 Troy ounces or 9450 grains)

 

3.  The Zakaat due upon two hundred dirhams is five dirhams, and twenty mithqals of gold, one half mithqal.  The rate on these forms of wealth is therefore one fortieth of one’s total wealth.

 

HOW TO PAY ZAKAAT

1.  Intention.  The person paying Zakaat should intend in his mind that he is paying Zakaat.  The intention needs to be made when paying to the beneficiary, or when the payer sets apart the proportion of Zakaat from his total wealth for payment at a later convenient time.  For example, when the payer gives Zakaat without any intention, but later makes the intention ( while the Zakaat paid is still in the possession of the beneficiary), then it is valid.

 

2.  The receiver.  It is NOT necessary that the receiver should know that the payment made to him is of Zakaat.  Thus, it is wholly correct if one pays the receiver of Zakaat a sum, saying that it is a gift or a loan, after having intended it to be the payment of Zakaat.

 

3.  Without intention.  If a person gives away his whole wealth in charity, without the intention of Zakaat, the obligation of Zakaat for him is waived.

 

4.  If a person exempts a poor man, or any other beneficiary of Zakaat, from the repayment of debt, intending that the debt is the payment of Zakaat obligatory upon himself, this is not considered as payment of Zakaat, because delivery is not apparent in this case.

 

5.  It is correct to pay Zakaat on gold and silver (naqdayn) by giving - to the beneficiaries – moveable properties, measurable things and weighable goods, equivalent to the value of gold and silver.  Should the payment be made in kind, i.e. by giving part of the gold or silver itself, then the weight should be taken into consideration and not the price.  In the case of money, the owner can, instead of the actual money due, pay the value in kind.